Large-capacity portable storage devices, which may comprise “accessory” memory such as a zip drive, external hard drive, SIM card, micro SD card, flash memory or flash drive, USB Memory Stick, Multi-Media Card, etc., have become ubiquitous. Such portable storage devices, or external memory devices, have largely replaced floppy disks, such as the 3½ inch standard disk with a memory capacity that peaked at 1.44 MB. Typical USB memory sticks have storage capacities from 500 MB up to 16 GB or more. With such increased storage capacities comes the ability to store large amounts of potentially sensitive and private data in one portable and easily transferrable device. Such portable storage devices are often misplaced and easily stolen. In addition, large enterprises are vulnerable to employees leaving the premises with confidential and proprietary information, and it is often difficult to prevent such activities or to trace such activities after the fact.